Economic growth in 2020 is looking at the disbursement of public investment capital when remaining motivation is facing many difficulties. However, with disbursement results not as expected, the Government has used tough and drastic messages to solve this problem. More than ever, the drastic and bold decisions of heads are needed, but also risk prevention mechanisms for breakthrough decisions in public investment disbursement.

HCM City strives to disburse 80% of the capital plan by October 2020 and
more than95% of the disbursement in 2020. Source: Internet 

Use "strong measures" to accelerate disbursement

According to the Ministry of Planning and Investment, by the end of June 2020, public investment capital has disbursed nearly VND 160 trillion, 33.9% of the plan. Minister of Planning and Investment Nguyen Chi Dung said that although all levels, sectors and localities have drastically directed to accelerate disbursement of public investment, the disbursed capital increased compared to the same period in 2019, but the rate of disbursements for the first six months was still low compared to requirements. Notably, data provided by the Ministry of Planning and Investment show that there are three ministries, central agencies and nine localities with disbursement ratios of more than50%, such as Nghe An, Thai Binh, Hung Yen and NinhBinh.PhuTho, BacNinh, Ha Nam, Lao Cai and Tien Giang as well. A total 33 ministries, central agencies and three localities have disbursement rate below 20%, in particular, there are seven ministries and central agencies where the disbursement rate reaches below 5%.

Impatient with low disbursement results, at an online briefing session between the Government Standing Committee and localities nationwide on disbursement of public investment capital on July 16, it was required to disburse 100% of the capital. Public investment in 2020, Prime Minister Nguyen XuanPhuc emphasised, must clearly assign responsibility to the head and direct officers to hope for a change in the situation and at the same time request the Chairmen of the People's Committee of Ministers, provinces and cities must have a specific and concise action plan with strong action in disbursing public investment. Every two weeks, there must be a report on disbursement and inspection. Notably, disbursement of capital from ministries, branches and localities that cannot be disbursed to focus on works and projects capable of disbursement will also be implemented by the Government from August. Right after this meeting, the Prime Minister decided to set up seven delegations to inspect, urge and remove difficulties and obstacles for production and business, accelerate disbursement of public investment capital (including ODA) in 2020 in several ministries, agencies and localities, which are led by the Prime Minister, Deputy Prime Ministers and a number of ministers.

Along with the determination of the Government, many localities have shown strong determination in this issue. Dong Nai People's Committee at a meeting with the Prime Minister recently committed to ensure disbursement of more than 95% of public investment capital in 2020 of 226 projects and focus on implementing land acquisition, compensation and support for the resettlement of Long Thanh airport and the North - South highway project in the Phan Thiet–Dau Giay section, the goal of handing over the priority area ground (more than 1,800 ha) for phase 1 of the Long Thanh airport project in October 2020.

The economic leader in HCM City has also applied many strong measures to promote disbursement of public investment. Determining disbursement of public investment as the central political task of 2020, on July 15, HCM City disbursed VND 18,836 billion, reaching 45.18% of the assigned capital plan, higher in price,absolute value and disbursement rate over the same period. Sharing experiences on the monthly field inspection of projects, listening to reports and removing difficulties at the construction site, Nguyen ThanhPhong, Chairman of HCM City People's Committee, confirmed he would focus on directing the work regularly disbursement of public investment, striving to meet 80% of the capital plan by October 2020 and more than 95% of the disbursement in 2020. If the disbursement rate is low, the emulation task will not be considered for completion in 2020 and no additional income will be given to the head and relevant project owner.

Risk prevention mechanisms needed for groundbreaking decisions

In the north, NinhBinh is a typical example of disbursement of public investment since it has disbursed about 72% of public investment capital of about VND 3,000 billion. Committing to complete 100% public investment disbursement this year, maybe even getting there by October, Dinh Van Dien, Chairman of NinhBinh People's Committee, said the solution of the province is to soon complete the procedures of the projects, focusing on clearance work in the direction of attaching responsibility of the Chairmen of the district and city People's Committee. The People's Committee and People's Council willmeet regularly to decide issues within their authority.

Regarding the urgency for projects to be completed on schedule, Ha Noi said it is determined to speed up progress, completing projects such as the investment project to expand the three-lane ring road of Mai Dich - Thang Long Bridge, a project to build a flyover at the intersection of Hoang Quoc Viet - Nguyen Van Huyen in October 2020. Starting from May 2018, the investment project to expand the ring road of three sections of the Mai Dich - Thang Long bridge has now been completed by 90%, this is one of the key transport works, when completed, will contribute to it is important to connect the elevated belt road 3 from Phap Van to Thang Long bridge, shorten the travel time from the inner city to NoiBai airport, to northern mountainous provinces and vice versa.

According to Assoc. Dr. Nguyen KhacQuocBao (Ho Chi Minh City University of Economics), to accelerate the disbursement of public investment, it is necessary to have breakthrough solutions, localities must even dare to "break rules" in some situations to disburse the public investment capital. "The saying’against economic recession like fighting against the enemy’by the Minister of Planning and Investment is an approach suggestion, which means that we must continue wartime-style thinking, characterized by quickness and daring, especially based on the assertiveness and responsibility of the commander, "Bao said. But in the opposite direction, Assoc. Dr. Nguyen Khac Quoc Bao said that in order for a sector or local commander to make breakthrough decisions now to overcome institutional and legal barriers to accelerate the ground clearance and disburse public investment capital without having to fear the issue of accountability, the necessary solution is to create a mechanism to prevent decision-making risks for industry and local commanders. The proposal to set up a"Steering Committee against the economic recession", headed by the Prime Minister, could be a feasible suggestion.

“The steering committee acts as an economic rescue command in the fight against recession, needs to make timely decisions or directives that break through or give commanders on the battlefield the special tools to turn around local situations and barriers. But at the same time, it is also necessary to protect them from risks and investigate responsibilities if the objective factors change adversely,” Assoc. Dr. Nguyen Bao recommended.

Earlier, at a seminar of the Central Institute for Economic Management (CIEM), Nguyen Anh Duong, Head of Integrated Research Department (CIEM) also emphasized that to promote growth, it is necessary to utilize resources more effectively in promoting public investment, by changing the mindset and habits in using state resources towards stronger, responsible and more effective. Accordingly, for the US$30 billion to be disbursed this year is not only on the plan, it should be "less fear of responsibility" in disbursing public investment capital and actively remove difficulties in the process to ensure public investment resources are used in the fastest and most effective manner.